UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 3, 2014
SABINE ROYALTY TRUST
(Exact name of Registrant as specified in its charter)
| Texas | 1-8424 | 76-6297143 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| U.S. Trust, Bank of America Private Wealth Management 901 Main Street, 17th Floor Dallas, Texas |
75202 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s Telephone Number, including area code: (214) 209-2400
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On April 3, 2014, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on April 15, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 9.01. | Financial Statements and Exhibits. |
| d. | Exhibits |
| 99.1 Press Release dated April 3, 2014. | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SABINE ROYALTY TRUST | ||||
| By: | BANK OF AMERICA, N.A., TRUSTEE | |||
| By: | /s/ RON E. HOOPER | |||
| Ron E. Hooper | ||||
| Senior Vice President and Administrator | ||||
Date: April 7, 2014
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Press Release dated April 3, 2014. | |
Exhibit 99.1
Sabine Royalty Trust
| News Release |
SABINE ROYALTY TRUST ANNOUNCES
MONTHLY CASH DISTRIBUTION FOR APRIL
Dallas, Texas, April 3, 2014 – U.S. Trust, as Trustee of the Sabine Royalty Trust (NYSE: SBR), today declared a cash distribution to the holders of its units of beneficial interest of $0.42267 per unit, payable on April 29, 2014, to unit holders of record on April 15, 2014. Sabine’s cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at
http://www.sbr-sabineroyalty.com/.
This distribution reflects primarily the oil production for January 2014 and the gas production for December 2013. Preliminary production volumes are approximately 46,394 barrels of oil and 633,451 Mcf of gas. Preliminary prices are approximately $91.37 per barrel of oil and $4.18 per Mcf of gas.
The table below compares this month’s production and prices to the previous month’s:
| Net to Trust Sales | ||||||||||||||||
| Volumes | Average Price | |||||||||||||||
| Oil (bbls) |
Gas (Mcf) |
Oil (per bbl) |
Gas (per Mcf) |
|||||||||||||
| Current Month |
46,394 | 633,451 | $ | 91.37 | $ | 4.18 | ||||||||||
| Prior Month |
25,688 | 312,901 | $ | 91.15 | $ | 3.80 | ||||||||||
Revenues are only posted and distributed when they are received. Most energy companies normally issue payment of royalties on or about the 25th of every month, and depending on mail delivery, a varying amount of royalties are not received until after the revenue posting on the last business day of the month. The revenues received after that date will be posted within 30 days of receipt.
Due to the timing of the end of the month of March, approximately $1,460,000 of revenue received will be posted in the following month of April in addition to normal receipts during April. Since the close of business in March and prior to this press release, approximately $291,000 in revenue has been received.
Sabine Royalty Trust, as it does after the end of each year, had a year-end Reserve Report prepared in accordance with the Securities and Exchange Commission’s requirements. This report provides an evaluation of the estimated asset value as of December 31 of each year, which can be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2014, attributable to the Trust from the properties appraised are approximately 6.3 million barrels of oil and 37.4 billion cubic feet of gas with a future net value of approximately $576,848,000 with a discounted value at 10% of $258,163,000 with the estimated quantities of this year’s reserve estimate of 6.3 million barrels of oil and 37.4 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 10 to 13 years. The report is an exhibit to the Trust’s Annual Report on Form 10-K that was filed on March 3, 2014 and is available to all unitholders at this time on the SEC website and Sabine’s website.
* * *
| Contact: | Ron E. Hooper | |
| Senior Vice President | ||
| U.S. Trust, Bank of America Private Wealth | ||
| Toll Free – 800.365.6541 |